; European infinite buy debts, the United States launched QE3, the world countries inject money to save the economy, which brought capital market infinite idle funds. It support the Hong Kong future commercial property market and stimulate the investors back to commercial property market. The mainland capital increased significantly. Combined with low interest rates maintain to 2015, future commercial property supply still lack, the market will chase after First Rate commercial property market which in arrears of wholly market. And Secondary Rate commercial property market which in smaller cost will have the chance to warm up. Benefit by East Kowloon concept, Hong Kong Property expected, the future commercial property market in the district will rise up by 20%.
Hong Kong Property Regional Business Director, Huang Huang said, benefit from the new completion commercial projects and Capital Construction concept, east Kowloon commercial property market expected to rise, and drive further Kowloon commercial property square feet price make new highest record up to average sq ft price HKD11,860 this year. It refresh high record and competitive square feet price attract more investors.
Hong Kong Property: Concordia Plaza at low level sq ft price
Huang Huang continue to refer, five low level commercial properties selected specially in Kowloon and the New Territories are Kwun Tong ELITE CENTRE, Tuen Mun Central Plaza, Tsim Sha Tsui Lippo Sun Plaza, Harbour Crystal Ctr and Concordia Plaza. Three traditional first rate commercial properties in Tsim Sha Tsui district in finalists. Concordia Plaza at intention square feet price about HKD11,500 in September lower spread above 30% compare to average square feet price about HKD15,200 deal in 2009; And Tuen Mun under benefit from the new residential projects, go up to be the top of investment value list among districts. The current average square feet price only about HKD3000 which in highly invest value compare to average square feet price above HKD10,000 in Kowloon, and HK island core commercial properties. So it is expected that commercial properties in Kowloon will rise above 10% in future.
The supreme commercial director of Hong Kong Property, HongXiang Weng analysis, the third quarter volume continued rise, and advantages for medium and long term invest in office property still continue, so the buying and selling will expected to warm up in fourth season. QE3 come on stage, lower interest environmental , huge capital market flooded in, fall circles look for ideal investment tools, plus with stable square feet price of first rate property since middle of last year, all above advantages will help market warming up; And the cost for secondary commercial property is smaller so it is estimated that investors will more active on this market.
Rent increase estimated higher than sq ft price
HongXiang Weng expected, from the current warming market observation, the fourth seasons office price will be much the same with the third season's. Since many long term investors have large stock, the deal price will not be possible reduced, and estimated that the price will keep still; As for the rental market, it is expected that the fourth season keep active. Rent increase higher than square feet price and it is expected that rent for first and secondary commercial property will maintain 8% rise for all year.
